Future of Six Flags now in Landrieu administration's hands

Mayor Mitch Landrieu's administration officially took over future decisions about the old Six Flags amusement park in New Orleans East under an agreement approved Tuesday (May 9) by the economic development board that owns the shuttered 220-acre property.

The New Orleans Industrial Development Board voted unanimously to reject three pending offers to buy the property and instead enter a cooperative endeavor agreement with the Landrieu administration for one year. The Landrieu administration will handle marketing the property and evaluating any proposals, in hopes of finally getting the long-blighted property revived.

Rebecca Conwell, Landrieu's senior economic development adviser, said the agreement means the current process to find a developer for the property has ended, and the city will come up with a new way to move forward.

The decision further drags out the saga of Six Flags -- once known as Jazzland -- which never reopened after Hurricane Katrina. The city inherited the property in a Six Flags bankruptcy case, and the Industrial Development Board later took title to the property on behalf of the city.

The city will be required to report its progress on the property at the Industrial Development Board's monthly meetings, and the board will maintain the final decision on any deals involving the property, under the agreement.

Board President Alan Philipson said the agreement is "advantageous to all."

Board members had expressed skepticism over whether the development groups offering to buy the property have the financial backing to bring their plans to reality, and the board appeared poised to reject the offers going into Tuesday's meeting.

A group led by mayoral hopeful Frank Scurlock who pitched a mixed-use entertainment and water park development offered $3.89 million. TPC-NOLA led by Tonya Pope, who also pitched a mixed-use retail and entertainment complex including a revival of Jazzland, offered $3.26 million. Dreamlanding, an entertainment-focused group, previously submitted a proposal for $4.55 million, although the board said it was not a legally binding purchase offer.

The agreement with the city is for one year, the maximum time allowed without getting City Council approval.

The board will still have to pay for maintenance and security for the property, a costly burden that the Industrial Development Board insists it never intended to take on. The Landrieu administration has refused the board's past requests for the city to take over maintenance.

David Wolf, the board's attorney, said the board has about $200,000 in savings from rent of the Six Flags park to movie production companies, and the costs of 24-hour security and maintenance are about $20,000 a month, leaving about 10 months worth of expenses in the bank.

Danny Rogers, part of the Dreamlanding group, told the board Tuesday that he is angry over spending so much time and money on their proposal only to have the board refuse to sell or develop the property once again. "It's the definition of insanity: doing the same thing over and over again ... expecting different results," Rogers said.